Selling Multiple Lots of AAMC For Gains of 330.6% and 3,633% In Less Than a Year
Today we sold all of our shares of Altisource Asset Management Corporation (AAMC) and removed AAMC from our Speculative Spin-Off list. This company was spun off from Altisource Portfolio Solutions S.A. (ASPS) in December, 2012. ASPS was also a successful spin-off that we purchased and sold for our Primary Stock Portfolio. Results of the ASPS transaction can be seen here.
We surmised that AAMC was a bit too risky for our Primary Stock Portfolio but thought it had potential for aggressive investors, so we added AAMC to our Speculative Spin-Off list in April of this year at a price of $130.05. Today we sold those shares for $560.01 for a gain of 330.6% in a little more than six months. This was the bulk of today's transactions. We also had a few shares left over from the December spin-off from ASPS when the shares debuted at $15. Selling those shares today resulted in a gain of 3,633% in a little over ten months.
Why We Are Selling
AAMC shares have risen dramatically, even as high as $702 on October 7. We believe the risk/reward ratio has changed enough that we are more comfortable taking our gains. There is still little known about AAMC's operational results, therefore there is little concrete information to support AAMC's meteoric rise. Given management's success with ASPS, it would not surprise us to see AAMC continue its rise, but given the opaqeness of its operations, we are more comfortable locking in our gains.
-Rex M. Jacobsen
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